Survey: Floridians prefer ability to choose energy provider

A new survery released by the American Coalition of Competitive Energy Suppliers reports that 78 percent of Florida consumers want competitive choices in retail energy. (Joseph Baucum/jbaucum@pnj.com)
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Contractors are building a new substation for Gulf Power in the Bellview area May 1, 2017.(Photo: Tony Giberson/tgiberson@pnj.com)Buy Photo

Similar to the ability to choose a cellphone provider or automaker, the majority of Floridians want the freedom to select which company supplies them electricity, according to a new survey.

The American Coalition of Competitive Energy Suppliers in Washington, D.C., released a report Wednesday that found 78 percent of surveyed residents in Florida believe that consumers should “be given competitive choices to meet their energy needs.”

The state currently does not allow for competition in retail energy. The majority of ratepayers live in the service area of one of four investor-owned monopoly utilities: Gulf Power Company, Florida Power & Light Company, Duke Energy of Florida or Tampa Electric. Based on the most recent figures from the Energy Information Administration, the four companies supply power to about 75 percent of the state’s customers.

“I think what that says to me is that in simple terms, Florida consumers are very much open to the concept of choice and want to see it pursued,” said Michael Meath, a spokesman with ACCES.

While many would presume cost savings to be the overwhelmingly dominant driver in respondents’ preference for a competitive market, the survey found that 47 percent would choose an energy provider based on factors other than price. The ability to lock in a rate was cited by 15 percent of respondents. The choice of more renewable energy was mentioned by 12 percent, and 10 percent answered they wanted more access to energy equipment service.

“But I think most Americans have an intrinsic belief in competition.”

Warren Rhea, Florida Energy Freedom attorney

About three-quarters of respondents also agreed that in a competitive market, the Florida Public Service Commission “should enforce consumer protection rules and control distribution costs while allowing competition and innovation.” Under the state’s regulated structure, consumer costs are already at the commission’s discretion. The utilities must file proposed rates with the commission, which then reviews the petitions.

“I think that means that Floridians are not naïve about a competitive market and that you need those guardrails in place for consumers,” said Meath, explaining respondents’ views on the commission’s role in a competitive energy market.

The survey determined that 75 percent of respondents also favored lawmakers passing a bill that would allow ratepayers the ability to choose their energy provider. If the state was to ever deregulate the retail markets and allow for newcomers to compete with the monopoly utilities, legislation would have to be approved in Tallahassee.

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Gulf Power Company transmission equipment is pictured in the Warrington area.(Photo: Tony Giberson/tgiberson@pnj.com)

In May, Gainesville-based nonprofit Florida Energy Freedom filed a proposed amendment with the Florida Constitution Revision Commission to institute competition. The FCRC could decide to put the measure on the 2018 mid-term ballot.

Warren Rhea, an attorney at Florida Energy Freedom, said his organization will use the ACCES survey to advocate for the amendment’s inclusion. He added that if the state allowed energy choice, the utilities’ role would be preserved, because customers still need the grid for safe and reliable delivery of electricity.

“But I think most Americans have an intrinsic belief in competition,” he said. “Even if they don’t know that there are alternative models out there, they probably look at their electricity bill and ask why this is one of the few things that get the monopoly benefits.”